Trading Strategies

07/25/2022
4:24 pm

A trading strategy is a set of rules that clearly define the conditions that must be met to enter a trade. Trading strategies define the necessary conditions for opening deals and include specific rules for entry, exit and capital management, and their employment. It is one of the important tools in the forex market because of its ability to provide an objective and sustainable plan. and verifiable.

Trading strategies can be implemented in two ways:
the trader can enter and exit deals manually according to his strategy.
the trader can activate the transaction, whether it is buying or selling in an automated way through a computer program.

Since the timing of entry and exit from the market plays a crucial role and above all this is essential in determining the levels of profits of traders, trading strategies have an important role to tame your investments appropriately, and there are a variety of trading strategies, so it is important to choose the strategy that is exactly suitable for your level of experience and goals, and the strategies most Popularity among traders is:

🔸 Scalping: The scalping strategy is very popular among forex traders, and it is one of the ways that forex brokers encourage their traders to practice it by providing high levels of leverage losses” within a day thanks to the ability to place a large number of trades.

🔸 Hedge: It is one of the most popular trading strategies used by traders in the forex market to protect their trades from the potential risk of loss resulting from news and events affecting global markets, and the hedging strategy is an approach that is followed for a short time to maintain a long-term investment.

🔸 Swing trading: It is one of the most common trading strategies that focus on taking advantage of routine price fluctuations, as this strategy relies on profiting from sudden price fluctuations. The expected direction of the next price volatility.

🔸 Supply and Demand: The supply and demand strategy is one of the basic strategies used in trading and depends on the idea of identifying strong areas of high and low prices and focuses on the desire of buyers to move the price. The degree of risk is very low in this strategy. The laws of supply and demand are based on determining the relationship between seller and buyer.

🔸 Support and Resistance: The strategy of support and resistance points is one of the very important indicators in trading forex and CFDs, regardless of whether you practice day trading or long-term trading, the concept of support and resistance is one of the basic concepts that must be understood, it is Reflect the mood of market participants.

🔸 Market analysis: There are two main types of market analysis, namely technical analysis and fundamental analysis, one of which depends on the study of candles and the other depends on economic news and important events, so the trader takes one of the analyzes to follow and choose to build his appropriate strategy.

🔸 Price Gap: The theory of market gap is part of technical analysis of markets and that the price of the gap is a good level of support or resistance, depending on the direction of the market, where there are great opportunities to create a trading strategy based on identifying price gaps and their nature provided that you have the necessary skill and experience to monitor them on the graphs.

🔸 Trend trading: Trend trading is one of the most reliable and simple forex trading strategies and this type of trading involves the current price direction and traders depend to determine the direction and strength of the current trend through technical trend indicators such as:
Moving Average, Fibonacci, Bollinger Bands, MACD

🔸Tracking the trend: The trend represents one of the most basic concepts in technical analysis, and trend trading is a classic trading strategy as it was one of the first strategies and will not lose its importance among traders around the world in the future, all thanks to 3 main and simple principles:

A/ Buy if the price trend is heading to the top, ie we are witnessing an uptrend.
B/ Sell if the price trend is heading downwards, i.e. we are witnessing a downtrend.
C/ Wait if the price direction is not moving up or down, but horizontally, that is, we see a sideways trend, that is, the market is stable.

Forex trading strategies come in different shapes and sizes, so before you start using any of them, we highly recommend you to test them first on a demo account, and always remember that no particular strategy consistently outperforms others all the time and that’s why diversification can help manage risk and reduce the volatility of price movements. Asset However, risk cannot be completely eliminated.